The Dynamics of Rent-Sharing across Occupations

Marta Fana, Luca Giangregorio and , Matteo

No vdkf2_v1, SocArXiv from Center for Open Science

Abstract: We study how firm-level productivity gains are shared across the occupational hierarchy. Using Portuguese matched employer-employee data linked to firm balance sheets (2004–2019), we develop an algorithm that identifies permanent shocks to firm value added and estimate occupation-specific rent-sharing elasticities in an event-study design. Pass-through declines steeply along the job ladder: the elasticity of pay premia to value added per worker is about 0.20 for managers and supervisors, 0.11 for qualified workers, and 0.06 for low-qualified workers. This gap has widened over time, increasing within-firm inequality, as pass-through to low-qualified workers has halved. This decline is consistent with de-unionization, while we show that minimum wage increases do not crowd out rent sharing at the bottom. (Stone Center on Socio-Economic Inequality Working Paper)

Date: 2026-10-20
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:vdkf2_v1

DOI: 10.31235/osf.io/vdkf2_v1

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